Fortunately, there are tons of creative ways to adjust your strategy and prepare for higher rates, and I want to share three of them with you today:

1. Pay off your debt or improve your credit. You may think your credit score is already as good as it can be, but there is always room for improvement. Start by paying off your debt little by little. This will lower your debt-to-income ratio, which is what lenders use to determine your creditworthiness. You can also save up for a bigger down payment to improve your credit and lower your rate. The results may seem small, but even a tiny difference can add up to a huge amount over the course of a loan. 

"The longer you wait, the more expensive homes will become."

2. Lock in your mortgage rate when it makes sense. If your lender is offering you a good rate, consider locking it in. Rates are expected to continue rising to combat inflation, but you won’t have to worry about that if your rate is locked in. Just remember that it only makes sense to lock in your rate when you’re almost to closing. Most rates only stay locked in for one to two months. 

3. Pay mortgage points at closing. Also known as “discount points,” mortgage points are fees you can pay to lower your interest rate. One point typically costs 1% of your loan, so a point on a $400,000 mortgage would cost $4,000. A nice perk of mortgage points is that they might be tax-deductible. If you can deduct your mortgage interest, chances are you can deduct the cost of your mortgage points as well. This can be a great option for first-time homebuyers. 

There are still plenty of opportunities in our market. If you have any questions about interest rates or purchasing a home, please call or email me. I am always willing to help!

A recent news article highlighted Myrtle Beach, South Carolina.

A recently published article by U.S. News & World Report highlighted Myrtle Beach as the No. 1 place to live in South Carolina. They also reported that Myrtle Beach is the No. 1 fastest growing area in the entire country. This is a really exciting time to invest in our area.

Whether you're buying, selling, or you just want to know a little bit more about the Myrtle Beach area, feel free to reach out to me by phone or email. I’d love to help you with all your real estate needs. Hope to hear from you soon!

Bryan Davenport talks about interest rates and some exciting loan programs.

Today I’m sitting down with Bryan Davenport from Gateway Mortgage to talk about interest rates. About a year and a half ago, interest rates were around 2.5%, but now they're approaching 6%. We wanted to dive into why those rates are so high, what that does to our market, and more.

Why have interest rates climbed so quickly?

We had a lot of things affecting our economy, but the big one is that inflation is skyrocketing. A lot of that is because supply chain issues have backed up a lot of products, and the costs of materials have also increased. The only way the Federal Reserve can lower inflation is to raise interest rates. People have varying opinions, but some think the Fed didn’t raise rates as soon as they should have, so we’ve seen rates rise quickly recently. That has caused a little bit of shock in the market, but things should settle down. Honestly, a 5% or 6% interest rate is normal; we just haven’t seen them for a while and got spoiled. Before COVID, we were just about to head into 5% anyway.

"Honestly, a 5% or 6% interest rate is normal; we’ve just been spoiled."

Have there been any conventional mortgage changes that might affect second homes?

Absolutely. Frannie Mae and Freddie Mac announced some pricing changes for second-home buyers at an unfortunate time. If you’re buying a vacation home, your interest rates will now be equal to, if not higher than, the rates for investment purchases. Those rates used to be the same as if you were buying your primary residence, so this change has increased the rates significantly. Gateway Mortgage has decided to waive that fee, so if you’re buying a second home, you won’t have to pay that higher interest rate.

What can you tell me about Gateway’s new condotel program?

When you buy a condo in the Myrtle Beach market, there are different guidelines based on what conventional financing calls for. If you look for properties outside of that scope, like a condotel, mainstream financing isn’t available. We’ve created a program that will help that type of customer. You can use it with your primary residence or your secondary home. You’ll need a 20% down payment, or 25% if you’re an investor, and the interest rate is very attractive.

If you have any more questions, feel free to call or email me. You can also email Bryan at byran.davenport@gatewayloan.com to talk to him directly. We’d both love to hear from you. 

Here’s a quick tip for improving your home before selling it.

The question I’ve been getting most recently is, “What home renovation project will give me the best return when I sell?” 

You should focus on kitchens and bathrooms, but you don’t need to do anything drastic. Considering we are still in a seller driven market, redoing the walls or replacing the floors can bring a great return without a huge investment upfront. It gives buyers a peace of mind that they don’t have to tackle flooring or painting immediately after moving in.

If you have any other questions for me about preparing your home for sale or anything else related to real estate, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.

Here’s what you need to know about our local real estate market.

Now that fall has started, how is our real estate market doing? Today I want to go over some of the numbers with you and explain what they say about the future of our market.

First off, the number of closed transactions increased by about 35% year over year. On top of that, we’re still seeing plenty of multiple-offer situations, and sellers are getting around 99% of their list price.

On another note, supply has gone down. This time last year, we had about four months of inventory; now, we only have one month. That’s a decrease of 58%! In September, we’ve seen more properties leave the market and go under contract than properties enter the market. All this information taken together shows that we are still in a strong seller’s market.

If you have questions about today’s video or any other topic, please call or email me. I am always willing to talk.

Here are the six most common mistakes that we see sellers make.

I’ve seen sellers make plenty of mistakes when selling their properties, and I want to help you avoid making those same mistakes when you decide to sell. Here are the six most common mistakes to avoid when selling your property:

1. Picking the wrong agent. The right agent is a professional who responds to you in a timely manner and understands the current market. They’ll be upfront, honest, and tell you what you need to hear.

2. Overpricing your home. A well-priced home will always sell, even in a bad market. We’re in a seller’s market right now, but proper pricing is still very important. It helps attract the most offers and gets you the highest price possible.

3. Not making simple repairs. Some fixes are very easy to do, but many sellers think the buyer can take care of them after the sale. Doing some repairs can help your property stand out upfront. Buyers could see small imperfections and wonder what else could be wrong with the house.

"We’re in a seller’s market right now, but proper pricing is still very important."

4. Neglecting to declutter. Clutter is incredibly distracting from what you’re trying to show off, the home. Put things away so buyers can stay focused.

5. Restricting access. If it’s hard for buyers to see your home, they won’t bother trying. If they’re turned away from a showing, they seldom come back. Be flexible, and make sure your home is show-ready at all times.

6. Getting too emotional. It’s easy to get attached to your home, but sellers should view it as a product.

If you have any questions about buying or selling a home, please feel free to reach out to me at 843-685-5826. I look forward to hearing from you.

It’s possible to efficiently buy and sell two homes concurrently.

How do you buy and sell at the same time? There are a few different ways to go about this. You could buy first and then sell, sell first and then buy, or do a concurrent sale. Here’s what that process looks like.

The first thing you should do is review your finances and get pre-approved with a local lender. Then we can determine how much your current home will sell for and how much you’ll be able to afford.

If you choose to buy first, you can search without the pressure of needing to sell. You also won’t need to find interim housing. The cons with this method are that you’ll have to pay two mortgages at the same time and we won’t have an exact figure for your equity until you sell.

"To buy and sell at the same time, a lot of preplanning needs to be done."

If you decide to sell first, you’ll know exactly how much equity you have and you won’t have to pay two mortgages, but you will have to find interim housing or negotiate a leaseback.

To buy and sell at the same time via a concurrent sale, a lot of preplanning needs to be done beforehand, but you can avoid the cons of both the other methods. Make sure the inspections and appraisals are done in advance so all the dates can line up.

If you have any questions about real estate matters, or if you’re looking to buy or sell a home, please reach out to me.

Here is your summer 2021 real estate market overview and update.

We’re still in the middle of this unprecedented seller’s market. The number of homes for sale is down by about 33% compared to this time last year. The number of pending transactions, or homes under contract, is up by about 44% compared to this time last year. We're also seeing even more people from the northeast and out-of-state moving to town. 

We're still seeing low interest rates; I see a lot of local lenders advertising about 3%. Today I saw someone lock in a 30-year fixed conventional loan at 2.875%. Right now is the time for buyers to take advantage of this market.

If you're on the fence about whether or not it’s time to buy or sell your property, feel free to reach out to me. I’d love to help you.

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We can definitely fill you in on details that are not listed on the report and help you determine the best home for you. If you are wondering if now is the time to sell, please try out our INSTANT home value tool. You’ll get an estimate on the value of your property in today’s market. Either way, we hope to hear from you soon as you get to know our neighborhoods and local real estate market better.